Maximum Pensionable Earnings For 2015
With the end of 2014 drawing closer, it is time to start thinking of the coming year. Canada Revenue Agency has announced changes to the maximum pensionable earnings for 2015.
Under the Canada Pension Plan (CPP) for 2015 the maximum pensionable earnings will be up – $53,600. This is up from $52,500 in 2014.
Contributors who earn more than $53,600 in 2015 are not required or permitted to make additional contributions to the CPP based on earnings exceeding this amount.
The basic exemption amount for 2015 remains at $3,500, and the employee and employer contribution rates for 2015 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employee and employer contribution to the plan will be $2,479.95 each (up from $2425.50 in 2014) and the maximum for self-employed individuals will be $4,959.90, up from $4851.00 in 2014.
Quick facts:
- The CPP applies in every province and territory in Canada with the exception of Quebec, where the Quebec Pension Plan (QPP) provides similar pensions and benefit.
- Every employed Canadian over the age of 18 must contribute to the (CPP) (QPP for Quebec workers) to qualify for a retirement pension.
- Contributions to the CPP end when a contributor turns 70.
- The CPP provides retirement, disability and survivor benefits and pensions to contributors and their families.
For more information on the Canada Pension Plan please refer to:
http://www.servicecanada.gc.ca/eng/services/pensions/cpp/contributions/index.shtml
Universal Child Care Benefit Proposed Enhancements
The enhancements to the UCCB program would take effect starting in January 2015 and would begin to be reflected in monthly payments to recipients in July 2015, pending parliamentary approval of the necessary legislation.
The government is proposing to enhance the UCCB starting in 2015. Parents will be able to receive up to $1,920.00 per year for each child under the age of 6 and $720.00 per year for children aged 6 through 17. The July 2015 payment would include up to six months of benefits to cover the January to June 2015 period. About 4 million families are expected to benefit from these enhancements. These enhancements would replace the Child Tax Credit, starting in the 2015 tax year.
Please watch for more information on the Universal Child Care Benefit enhanced program.
Karen Evin / Payroll Administrator / PEO Canada